Management Accounting

MANAGEMENT
ACCOUNTING

CONTENT
• Cost using techniques and cost analysis to produce income statement using marginal & absorption
costs
• Income statement under absorption costing

Cost using techniques and cost analysis to produce
income statement using marginal & absorption costs
3
Activity April May
Variable Manufacturing cost per unit 4 4
Fixed Manufacturing Overhead per unit 6 5
Total 10 9
Preparation of income statements:
Cost per unit under absorption costing-

Income statement under absorption
costing
4
Particulars April May
Sales 16000 16000
Less: Cost of sales 20000 23000
Fixed Manufacturing Overhead 15000 15000
Variable Manufacturing cost 10000 12000
Closing stock 5000 9000
Opening stock 0 5000
Gross loss -4000 -7000
Less: Fixed Non Manufacturing Cost -4000 -4000
Net Loss -8000 -11000